Health System Funding Reform Funding Release – HNHB “Dramatically improving the patient experience through Quality, Integration and Value” Audit Committee Meeting October 29, 2014

Outline HSFR Roll-Out Plan for Hospitals HSFR Overview HSFR Summary Pre-Mitigation Funding Calculation The Health Based Allocation Model (HBAM) The Quality Based Procedure Mitigation Funding Calculation Impact Analysis Workbook Review Funding Impact Analysis Support Resources Q&A Session 2

Releasing HSFR Funding Information 3

Change is Necessary 4

Health System Funding Reform 5

6

HSFR Implementation 7

Quality Based Procedures 8

HSFR Summary 9

10

QBP Methodology Updates 11

QBP Approach 12

Other Methodology Updates 13

What is HBAM? HBAM is an evidenced-based, health-based funding formula. HBAM estimates future expense levels based upon past service levels and unit costs, as well as population and health information. Population information includes: Age, Gender, Growth Projections, Socio-Economic Status (SES), Rural Geography Health information includes indirect measures and health status Care-type specific diagnostics and procedural information 14

HBAM Overview 15

HBAM – Expected Results 16

QBP Funding Calculation & Allocation 17

Mitigation Funding 18

HNHB Results – Hospitals 19

HNHB Results – CCAC Mitigation Remains in CCAC Sector: -1% to +3% HBAM represents approximately 30% of total funding allocation 20

Small Hospitals Fewer than 2,700 acute inpatient and/or day surgery weighted cases in any two of the prior three years of the most recent data Two Hospitals in HNHB 1.Haldimand War Memorial Hospital 2.West Haldimand General Hospital Continue to receive funding on Global basis (no HBAM or QBP) 21

Thank you 22